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Business

Here is The Newest Information on the Colonial Pipeline Shutdown

Here's The Latest News on the Colonial Pipeline Shutdown

HOUSTON – Drivers scrambled to refuel their vehicles at gas stations in the southeast on Tuesday in a panic frenzy that left thousands of gas stations out of gas because of an important fuel line stretching 5,500 miles from Texas New Jersey stretches largely shut down after last week’s ransomware attack.

The shutdown has also left the airlines vulnerable. Several said they were flying on jet fuel to make sure the service wasn’t disrupted.

Gasoline in Georgia and several other states rose 3 to 10 cents a gallon on Tuesday, a price surge normally only seen when hurricanes disrupt refining and pipeline operations in the Gulf of Mexico.

The national average for a gallon of regular gasoline rose 2 cents on Tuesday, with higher prices reported in the southeast, according to the AAA automotive group. A gallon of gasoline rose, on average, nearly 7 cents in South Carolina and 6 cents in North Carolina, while gasoline in Virginia rose about 3 cents per gallon. Gas stations in the southern states were selling two to three times their normal amount of gasoline on Tuesday, according to the Oil Price Information Service, an organization tracking the oil sector. Some stations are running out of fuel while others limit purchases to 10 gallons.

Gas Buddy, a service that tracks gas prices, reported that nearly 8 percent of gas stations in Virginia ran out of gas, due more to panic buying than a lack of gas.

The heads of state responded with measures to keep the flow of fuel stable and to stabilize prices.

Georgia Governor Brian Kemp signed an executive order suspending his state’s gasoline tax by Saturday, which is approximately 20 cents a gallon. He said the move would “help level the price for a while,” and warned of panic buying, which he felt was unnecessary. North Carolina Governor Roy Cooper and Virginia Governor Ralph Northam each declared a state of emergency to suspend some regulations governing the transportation of fuel.

South Carolina Attorney General Alan Wilson announced that he was ready to administer the state’s price cut law, making excessive congestion a criminal offense. “I urge everyone to be careful and patient,” said Wilson. “I urge citizens to remain vigilant and notify my office immediately if they think they are witnessing or are aware of price cuts.”

Environmental Protection Agency Administrator Michael S. Regan on Tuesday issued an emergency air-fuel waiver to alleviate fuel shortages in states whose gasoline supplies are affected by the pipeline shutdown, including the District of Columbia, Maryland , Pennsylvania and Virginia. The waiver will continue until May 18.

Colonial Pipeline, the company that operates the pipeline, hopes to restore most operations by the end of the week. The attack carried out by the Federal Bureau of Investigation by an organized crime group called DarkSide exposed the vulnerability of the American energy system. The pipeline supplies the eastern United States with nearly half of its transportation fuel.

Industry analysts said the impact would be relatively minor as long as the artery is fully restored soon. “With a solution to the shutdown in sight, the cyberattack is now being treated as a minor disruption by the market and prices are reducing panic gains on Monday,” said Louise Dickson, oil market analyst at Rystad Energy.

Gasoline prices usually go up at this time of year as the summer driving season approaches. Even before the Colonial Pipeline ceased operations, average national gas prices rose nearly a cent per gallon every day.

Higher fuel prices affect workers and people on lower incomes the most, as they spend the highest percentage of their income on gasoline and tend to drive less efficient vehicles. This makes rising gasoline prices a potential political problem after several years of relatively low prices at the pump.

White House press secretary Jen Psaki made a statement Monday evening that President Biden is monitoring fuel shortages in the southeast.

Several airports in the south and in the Washington region could be affected in the next few days as they are connected to the pipeline and usually only have a few days of supply.

The interstate pipeline system for supplying airports with jet fuel had become increasingly vulnerable to costly disruptions in recent years, the industry trading group Airlines for America said in a 2018 report. And if there are disruptions, airlines have few options other than flying on extra fuel, stopping flights or canceling and rerouting flights altogether.

“Pipelines play a vital role in supplying our nation with jet fuel and ensuring air service – for passengers and cargo – for communities large and small,” said the group at the time. “Unfortunately, our national pipeline system is fragile today.”

After the disruption last weekend, American Airlines announced that two daily flights from Charlotte, NC One, to Honolulu, Dallas, where customers will switch planes, have been halted. The other, to London, will stop in Boston to refuel. Flights are expected to return to their original flight schedules on Saturday. Southwest Airlines said it was flying to Nashville on extra fuel and United Airlines said it was flying extra fuel to Baltimore; Nashville; Savannah, Ga .; and Greenville-Spartanburg International Airport in South Carolina. United, Southwest and Delta Air Lines said they had not detected any operational disruptions so far.

Gillian Friedman contributed to the coverage.

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Politics

Biden ready to take further steps after Colonial Pipeline ransomware assault

Biden prepared to take additional steps after Colonial Pipeline ransomware attack

Fuel tanks are seen at Linden Junction Tank Farm on the Colonial Pipeline in Woodbridge, New Jersey on May 10, 2021.

Michael M. Santiago | Getty Images

WASHINGTON – President Joe Biden said Monday his administration was ready to take further steps as the energy sector grapples with a colossal cyberattack on one of the largest fuel pipelines in the country.

On Friday, the Colonial Pipeline ceased operations and notified federal authorities that it had been the victim of a ransomware attack.

The attack, carried out by criminal cyber group DarkSide, forced the company to shut down about 5,500 miles of pipeline, cutting off half of the fuel supply on the east coast of the country. Ransomware attacks are malware that encrypts files on a device or network and causes the system to become inoperable. Criminals behind such cyber attacks usually demand a ransom in return for releasing data.

The Department of Energy leads the federal government’s response in coordination with the FBI, the Department of Homeland Security, and the Department of Defense. A FireEye Mandiant spokeswoman confirmed to CNBC that the US cybersecurity company is working with Colonial Pipeline following the incident.

Biden said he has received regular information on the matter since the attack that struck the carotid artery of the American pipeline system. The president said his government had no information to support claims that Moscow directed the ransomware attack. He added that he would continue to discuss the situation with Russian President Vladimir Putin.

“So far there is no evidence from our intelligence officials that Russia is involved, although there is evidence that the actor’s ransomware is in Russia. They have a certain responsibility to deal with it,” said Biden of the White House.

The Kremlin has previously denied claims that it launched cyberattacks against the United States.

President Joe Biden discusses the US economy as Vice President Kamala Harris stands by in the East Room of the White House in Washington, USA on May 10, 2021.

Kevin Lemarque | Reuters

On the previous Monday, White House national security officials described the attack as financially motivated. However, Biden administration officials would not say whether Colonial Pipeline would agree to pay the ransom.

“Usually this is a private sector decision,” Anne Neuberger, deputy national security advisor on cyber and emerging technologies, told White House reporters when asked about the ransom payment.

“We recognize that cyber attack victims often face a very difficult situation and often only have to weigh the cost-benefit ratio when they have no other choice but to pay a ransom. Colonial is a private company, and we will postpone information about your decision. ” about paying a ransom to them, “said Neuberger.

Anne Neuberg, Deputy National Security Advisor for Cyber ​​and Emerging Technologies, speaks about the colonial pipeline failure following a cyber attack during the daily press conference at the White House in Washington, USA, on May 10, 2021.

Kevin Lemarque | Reuters

She added that the FBI had previously warned victims of ransomware attacks that paying a ransom could encourage further malicious activity.

Colonial Pipeline did not immediately respond to CNBC’s request for comment.

On Monday before, the DarkSide group described its actions as “apolitical” in a Cybereason statement to CNBC.

“We are apolitical, we do not participate in geopolitics, we do not have to be tied to a defined government and look for our motives,” wrote the group.

“Our goal is to make money and not create problems for society. Starting today, we are introducing moderation and reviewing every company that our partners want to encrypt in order to avoid social consequences in the future,” added the statement.

Pentagon spokesman John Kirby said Monday that the Department of Defense is monitoring the country’s fuel supplies amid concerns that the Colonial Pipeline shutdown could lead to gasoline, diesel and jet fuel shortages. Kirby said there are currently no known shortages in the U.S. military.

Deputy National Security Advisor Elizabeth Sherwood-Randall told White House reporters that the government had forecast no fuel shortages.

Colonial Pipeline wrote in a statement Monday afternoon that it hopes to return service by the end of the week.

“Federal government measures to grant temporary duty relief to motorists and drivers transporting refined products across Colonial’s entire footprint should help alleviate local disruptions in supply, and we thank our government partners for their assistance in resolving this issue “added the statement.

The attack on the Colonial Pipeline comes as the Biden administration is working to pass a $ 2.3 trillion infrastructure plan aimed at partially addressing America’s critical infrastructure vulnerabilities.

“Unfortunately, these types of attacks are becoming more common. They are here to stay. And we have to work with companies to secure networks to defend ourselves,” Commerce Secretary Gina Marie Raimondo told the CBS Sunday program “Face the Nation.” “. “

“Right now it’s entirely manual work. And we’re working closely with the company, the state and local authorities to make sure they get back to normal operations as quickly as possible and that there are no disruptions.” on offer, “she said, adding that infrastructure investments are a top priority for management.

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Business

How the Colonial Pipeline Turned a Important Artery for Gas

How the Colonial Pipeline Became a Vital Artery for Fuel

This gave them an enormous competitive advantage over the refineries on the east coast, which imported oil from abroad or by rail from North Dakota after the start of the shale boom. As the local refineries closed their doors, the Colonial Pipeline became increasingly important as a connection to refineries in Texas and Louisiana.

The Midwest has its own pipelines from the Gulf Coast, but while the East Coast has closed refineries, the Midwest has opened some new plants and expanded others over the past 20 years to process Canadian oil, mostly from Alberta sands. California and the Pacific Northwest have sufficient refineries to process crude oil made in California and Alaska and South America.

Not much. The northeastern supply system is flexible and resilient.

Many hurricanes have damaged pipelines and refineries on the Gulf Coast in the past, and the east coast managed to handle this. The federal government stores millions of gallons of crude oil and refined products for emergencies. Refineries can import oil from Europe, Canada, and South America, although it can take up to two weeks for transatlantic cargo to arrive.

When Hurricane Harvey hit Texas in 2017 and damaged refineries, shipments from the Colonial Pipeline to the northeast were suspended for nearly two weeks. Port of New York gasoline prices rose rapidly by more than 25 percent, and the additional costs were passed on to motorists. It took over a month for prices to return to previous levels.

Hacking a large pipeline may not be a major problem for drivers, but it is a sign of the times. Criminal groups and even nations can threaten power lines, personal information, and even banks.

The group responsible for the pipeline attack, DarkSide, usually locks their victims’ data using encryption and threatens to release the data unless a ransom is paid. Colonial Pipeline did not say whether it paid a ransom or intended to do so.

“The unfortunate truth is that infrastructure today is so fragile that almost anyone who wants to get in can get in,” said Dan Schiappa, chief product officer of Sophos, a UK security software and hardware company. “Infrastructure is an easy and lucrative target for attackers.”

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Business

Pipeline outage forces airways to think about different gasoline provides

Pipeline outage forces airlines to consider other fuel supplies

Holding tanks can be seen in the Charlotte Airport Delivery Facility of Colonial Pipeline in Charlotte, North Carolina, USA, an undated photo.

Colonial pipeline | via Reuters

The cyberattack that forced the shutdown of the largest refined fuel pipeline in the country over the weekend triggered some route changes for American Airlines as it aims to save fuel at its second largest hub.

Colonial Pipeline Co., which operates the 5,500-mile-long pipeline from Houston, Texas, to Linden, New Jersey, has a goal of resuming operations by the end of the week but said the process would be gradual. According to the company, the pipeline serves seven airports directly.

Hartsfield-Jackson Atlanta International Airport, which is the busiest for Delta Air Lines, said it is reviewing other fuel suppliers but operations are not affected.

“Hartsfield-Jackson and its airline partners are in close communication with fuel suppliers and are taking steps to mitigate the effects of the colonial incident,” a spokeswoman said in a statement. “ATL is currently coordinating with other suppliers to increase the airport’s fuel inventory.”

Delta declined to comment on the pipeline failure.

American Airlines said in a statement that the impact of the outage on its operations has so far been minor. Stopovers will be added for two long-haul flights from Charlotte Douglas Airport, the airline announced on Monday. A non-stop trip to Honolulu will stop at Dallas-Fort Worth International, where the fuel supply has not been interrupted. Customers there will convert their aircraft to a Boeing 777-300 to fly on to Hawaii.

A flight from Charlotte to London will stop in Boston for extra fuel. The changes are effective at least until May 14th.

Southwest Airlines flies extra-fuel aircraft at airports such as Nashville International Airport “to supplement local supplies.” Airlines can load more fuel on planes than is normally needed to avoid or reduce the need to refuel on the ground when supplies are limited.

“We are pleased to announce that Southwest’s operations have no impact,” said a spokesman.

American is also considering moving or refueling fuel at airports affected by the shortage, according to someone familiar with the matter.

United Airlines said it is working with airports “to understand the impact and our operations are not currently affected”.

Analysts have said the impact on the supply of jet fuel and other refined products like gasoline will depend on how long the outage lasts, especially as Memorial Day weekend approaches.

“We could probably do inventory for a week and then the problem would become acute,” said Rick Joswick, global head of oil analysis at S&P Global Platts. “Hopefully this will be resolved by then.”

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Politics

F.B.I. Identifies Group Behind Pipeline Hack

F.B.I. Identifies Group Behind Pipeline Hack

According to intelligence officials, all signs indicate that it was merely an act of extortion by the group that first began delivering such ransomware in August last year and that is believed to be operating from Eastern Europe, possibly Russia. Even in the group’s own testimony on Monday, there was evidence that the group had only intended to extort money from the company and was surprised that the main gasoline and jet fuel supplies for the east coast were cut.

The attack exposed the remarkable vulnerability of a major energy channel in the US as hackers become bolder in taking over critical infrastructure such as power grids, pipelines, hospitals and water treatment plants. The Atlanta and New Orleans city governments and, in recent weeks, the Washington, DC Police Department, have also been hit.

The explosion in ransomware cases has been fueled by the rise in cyber insurance – which has made many companies and governments mature targets for criminal gangs who believe their targets will pay off – and cryptocurrencies, which make it difficult to track extortion payments.

In this case, the ransomware was not targeting the pipeline’s control systems, but rather the company’s back-office operations, said federal officials and private investigators. However, fear of greater damage forced the company to shut down the system. This created the huge security gaps in the patched network that keeps gas stations, truck stops, and airports going.

A preliminary investigation found poor security practices at Colonial Pipeline, according to federal and private officials familiar with the investigation. The mistakes most likely made it fairly easy to break into and block the company’s systems.

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Business

Pipeline Hit by Ransomware Hopes to Restart by Finish of Week

Pipeline Shutdown Has Had Little Impact on Supplies So Far

An oil and gas pipeline system that had to be shut down on Friday after a ransomware attack is not expected to be “substantially” restored until the end of the week, the operator Colonial Pipeline announced on Monday.

“As this situation continues to flow and evolve, the colonial operations team is executing a plan that includes an incremental process that will make it easier to get back up and running gradually,” said a statement posted on its website. “This plan is based on a number of factors, security and compliance driving our operational decisions, and the goal of substantially restoring operational service by the end of the week.”

The company said it monitored its customers’ shipments and worked with shippers to move fuel.

The sudden shutdown of 5,500 miles of pipeline, which the company claims represents nearly half of the east coast’s fuel supply, was a worrying sign of weaknesses in the country’s energy infrastructure. The shutdown had raised concerns about fueling much of the pipeline across the country. As a result, gasoline futures prices had risen on Monday, and analysts said a longer shutdown could push them up even further – which could potentially impact the prices consumers pay for gasoline at the pump. Experts said several airports depend on the jet fuel pipeline, including those in Nashville, Baltimore-Washington, and Charlotte and Raleigh-Durham, NC, could have a tough time later in the week. Airports usually store enough jet fuel for three to five days of operation.

This is a developing story. Check for updates again.

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Business

Gas Costs Rise After Oil Pipeline Is Hacked: Dwell Enterprise Updates

Colonial Pipeline fuel tanks in Woodbridge, N.J. The company’s pipeline carries nearly half the fuel supplies for the East Coast.

Here’s what you need to know:

Credit…Colonial Pipeline/Via Reuters

Gasoline prices rose as much as 4.2 percent early on Monday after a major petroleum pipeline in the United States was shut down over the weekend because of a cyberattack. The pipeline’s operator, Colonial Pipeline, hasn’t said when it will reopen, raising concerns about the infrastructure that carries nearly half of the fuel supplies for the East Coast.

By 7:30 a.m. Eastern Standard Time, futures of gasoline for June delivery were up 1.7 percent but still at the highest level since late 2018. The instability is contained to prices that traders pay for gasoline, but may affect prices at the pump in the coming weeks.

“Should the pipeline be brought online at the start of the week, the impact on prices should be limited,” Giovanni Staunovo, an analyst at UBS Global Wealth Management, wrote in a note. “However, a prolonged shutdown (5 days or longer) is likely to send gasoline prices higher, which already trade close to a 7-year high.”

Oil prices also rose. Futures on West Texas Intermediate, the U.S. crude benchmark, were up 0.6 percent to $65.29 a barrel, after climbing as much as 1.3 percent.

The increase in the price of gasoline and oil has added to what was already a boom in commodity prices. As economies from the United States to China have shown signs of strength, demand for raw materials to power industrial growth has risen. On Monday, iron ore futures rose as much as 10 percent and copper prices extended their record high.

A Bloomberg commodities index, which tracks the prices of 23 commodities from gold and oil to wheat and sugar, was at its highest level since mid-2015. Freeport-McMoRan, an American mining company, and United States Steel both rose more than 3 percent in premarket trading.

  • U.S. stocks were set to open slightly lower on Monday, futures indicated, pulling the S&P 500 back from a record high.

  • The benchmark stock index had risen on Friday after an unexpectedly weak jobs report tempered expectations about how soon the Federal Reserve would consider withdrawing some monetary stimulus.

  • The Stoxx Europe 600 was flat while the CAC 40 in France and DAX in Germany both fell 0.2 percent.

  • The British pound rose 0.8 percent against the U.S. dollar and 0.9 percent against the euro after the results of Thursday’s local elections were confirmed. The Scottish National Party, which is pushing for a second independence referendum, fell one seat short of gaining an outright majority in its Parliament. But it will still govern with the support of another pro-independence party.

  • The pound’s gains on Monday were as much about the weak dollar as the election results, Kit Juckes, a strategist at Société Générale, wrote in a note. “I don’t know anyone who thinks the risk of a second Scottish referendum has gone away.” The pound can rise against the dollar because the U.S. currency “remains under pressure from global economic optimism,” he added.

  • The pound was at $1.41, the highest since February.

Colonial Pipeline fuel tanks in Maryland. The company operates the largest petroleum pipeline between Texas and New York.Credit…Jim Lo Scalzo/EPA, via Shutterstock

The operator of the largest petroleum pipeline between Texas and New York, shut down after a ransomware attack, declined on Sunday to say when it would reopen.

While the shutdown has so far had little impact on supplies of gasoline, diesel or jet fuel, some energy analysts warned that a prolonged suspension could raise prices at the pump along the East Coast and leave some smaller airports scrambling for jet fuel, Clifford Krauss reports for The New York Times.

Colonial Pipeline, the pipeline operator, said on Sunday afternoon that it was developing “a system restart plan” and would restore service to some small lines between terminals and delivery points but “will bring our full system back online only when we believe it is safe to do so.”

The company, which shut down the pipeline on Friday, has acknowledged that it was the victim of a ransomware attack by a criminal group, meaning that the hacker may hold the company’s data hostage until it pays a ransom. Colonial Pipeline, which is privately held, would not say whether it had paid a ransom. By failing to state a timeline for reopening on Sunday, the company renewed questions about whether the operations of the pipeline could still be in jeopardy.

The shutdown of the 5,500-mile pipeline was a troubling sign that the nation’s energy infrastructure is vulnerable to cyberattacks from criminal groups or nations.

Energy experts predicted that traders would view the company’s announcement on Sunday as a sign that the pipeline would remain shut at least for a few days.

Experts said several airports that depend on the pipeline for jet fuel, including Nashville, Tenn.; Baltimore-Washington; and Charlotte and Raleigh-Durham, N.C., could have a hard time later in the week. Airports generally store enough jet fuel for three to five days of operations.

White House officials held emergency meetings on the pipeline attack over the weekend. The White House press secretary, Jen Psaki, said in a tweet that they are looking for ways to “mitigate potential disruptions to supply.”

A United Airlines vaccine clinic at O’Hare Airport in Chicago. Employers are using on-site vaccinations to encourage workers to get shots.Credit…Scott Olson/Getty Images

As companies make plans to fully reopen their offices across the United States, they face a delicate decision. Many would like all employees to be vaccinated when they return, but in the face of legal and P.R. risks, few employers have gone so far as to require it.

Instead, they are hoping that encouragement and incentives will suffice, Gillian Friedman and Lauren Hirsch report for The New York Times.

Legally, companies seem largely in the clear. The Equal Employment Opportunity Commission issued guidance in December stating that employers are permitted to require employees to be vaccinated. But employers are still worried about litigation, in part because several states have proposed laws that would limit their ability to require vaccines.

“It would seem to me that employers are going to find themselves in a fairly strong position legally,” said Eric Feldman, a law professor at the University of Pennsylvania, “but that doesn’t mean they’re not going to get sued.”

So, companies are resorting to carrots over sticks. Darden offers hourly employees two hours of pay for each dose they receive. Target offers a $5 coupon to all customers and employees who receive their vaccination at a CVS at Target location. And many companies are hosting on-site clinics to make it easier to get vaccinated.

Others are experimenting with return-to-office policies that aren’t all or nothing. Salesforce will allow up to 100 fully vaccinated employees to volunteer to work together on designated floors of certain U.S. offices. Some companies are mandating the shots only for new hires.

A pop-up vaccination site in Miami Beach, Fla. Companies are debating vaccine mandates for their workers.Credit…Eva Marie Uzcategui/Agence France-Presse — Getty Images

Last week, the DealBook newsletter wrote about one of the most vexing issues facing boardrooms: Should companies mandate that employees get vaccinated before returning to the workplace? Many readers shared opinions, personal experiences and suggestions for handling this complex issue. Here is a small selection, edited for clarity:

  • “The way we’re doing it at our company is, if you submit a reason from your doctor or you have a religious belief or some other valid reason not to get the vaccination yet, you are required to be tested weekly and submit the results to H.R.” — Patricia Ripley, New York City

  • “We don’t know the long-term dangers of these vaccines. They may be bad or good. No one knows. Our employers should not be able to simply ignore any of our worries and concerns.” — Brandon Atchison, Verbena, Ala.

  • “I strongly support employer mandates. A few well-publicized firings will end the ‘hesitancy,’ but the firings must be backed up by classifying them as ‘for cause.’ That means no severance for executives and no unemployment for staff who refuse.” — Paul Levy, Carolina Beach, N.C.

  • “Individual rights are the cornerstone of American democracy — trampling them for the vaccine rollout is a dangerous precedent. People seem to forget that these ‘temporary changes’ end up as permanent, with the result that your employer can now compel greater access to your personal decision-making.” — Anonymous

  • “An unvaccinated person exposes everyone in the office, including visiting customers and clients, to the virus. Why should everyone else be jeopardized because of one person? Simply let unvaccinated people continue to work at home and suffer any consequences to their career paths that may result.” — Joseph Carlucci, White Plains, N.Y.

  • Norwegian Cruise Line is threatening to keep its ships out of Florida ports after the state enacted legislation that prohibits businesses from requiring proof of vaccination against the coronavirus in exchange for services. The company, which plans to have its first cruises available to the Caribbean and Europe this summer and fall, will offer trips with limited capacity and require all guests and crew members to be vaccinated on bookings through at least the end of October.

  • The operator of the largest petroleum pipeline between Texas and New York, which was shut down on Friday after a ransomware attack, would not give a timeline on Sunday on when it would reopen the pipeline. Colonial Pipeline, the pipeline operator, said on Sunday afternoon that it was developing “a system restart plan” and would restore service to some small lines between terminals and delivery points but “will bring our full system back online only when we believe it is safe to do so.”

The Los Angeles area has the nation’s largest concentration of warehouses, contributing to some of the worst air pollution in the country.Credit…Philip Cheung for The New York Times

The South Coast Air Quality Management District in Southern California on Friday adopted a rule that would force about 3,000 of the largest warehouses in the area to slash emissions from the trucks that serve the site or take other measures to improve air quality, The New York Times’s Hiroko Tabuchi reports.

Southern California is home to the nation’s largest concentration of warehouses — a hub of thousands of mammoth structures, served by belching diesel trucks, that help feed America’s booming appetite for online shopping and also contribute to the worst air pollution in the country.

The rule sets a precedent for regulating the exploding e-commerce industry, which has grown even more during the pandemic and has led to a spectacular increase in warehouse construction.

The changes could also help spur a more rapid electrification of freight tucks, a significant step toward reducing emissions from transportation, the country’s biggest source of planet-warming greenhouse gases. The emissions are a major contributor to smog-causing nitrogen oxides and diesel particulate matter pollution, which are linked to health problems including respiratory conditions.

Empty platforms at the New Jersey Transit station in Secaucus in May.Credit…Bryan Anselm for The New York Times

Before the pandemic, the trains of New Jersey Transit could be cattle-car crowded, with strangers pressed so closely against you that you could deduce their last meal. That level of forced intimacy now seems unimaginable.

After the outbreak, ridership on New Jersey trains, which in normal times averaged 95,000 weekday passengers, plummeted to 3,500 before stabilizing at about 17,500. A similar pattern held for the Metropolitan Transportation Authority’s Metro-North and Long Island Rail Road lines: in February 2020, nearly 600,000 riders; two months later, fewer than 30,000.

For many months, the commuter parking lots were empty, the train stations closed, the coffee vendor gone. At night, the trains cutting through Croton-on-Hudson in Westchester or Wyandanch on Long Island or in Maplewood, N.J., were like passing ghost ships, their interior lights illuminating absence.

But in recent weeks, as more people have become vaccinated, New Jersey Transit and the M.T.A. have seen a slight uptick, to about a quarter of their normal ridership.

Perhaps this signals a gradual return to how things had been; or, perhaps, it is a harbinger of how things will be, given that many people now feel that they can work just as efficiently from home.

Categories
Business

Gasoline futures bounce as a lot of significant pipeline stays shutdown following cyberattack

Ransomware attack forces shutdown of largest fuel pipeline in the U.S.

Signage will be displayed on a fence at the Colonial Pipeline Co. Pelham intersection and terminal in Pelham, Alabama, USA on Monday, September 19, 2016.

Luke Sharrett | Bloomberg | Getty Images

Fuel prices rose in stores on Sunday evening as one of the largest pipelines in the US remains closed after a cybersecurity attack.

West Texas Intermediate’s crude oil futures, the US oil benchmark, rose 47 cents to $ 65.37 a barrel. The international benchmark Brent crude was trading at $ 68.76 a barrel, which translates into a profit of 48 cents. Natural gas futures were trading at $ 2.96 per million British thermal units, while gasoline futures rose 3% to $ 2.193 per gallon.

Colonial Pipeline announced Sunday evening that some of its smaller side lines between terminals and delivery points are back online, but the main lines are still down.

“We are in the process of restoring service to other side panels, and will only bring our entire system back online if we believe it is safe and fully comply with all federal regulations,” the company said in a statement.

How quickly service is restored in the pipeline remains the deciding factor. While fuel depots are usually stored for a few days in tank farms, a prolonged outage can lead to an increase in fuel prices.

The Colonial Pipeline, which operates the largest pipeline transporting fuel from the Gulf Coast to the northeast, “suspended all pipeline operations” on Friday evening as a proactive measure following a ransomware cyberattack.

The pipeline is an essential part of the US petroleum infrastructure and transports around 2.5 million barrels of gasoline, diesel fuel, heating oil and jet fuel every day. The pipeline is more than 5,500 miles and carries nearly half of the east coast’s fuel supply. The system also supplies fuel to airports, including in Atlanta and Baltimore.

“Without this there is no transport in the region, so it is important that the pipeline is back on stream as soon as possible,” said Patrick De Haan, Head of Petroleum Analysis at GasBuddy. “The effects will potentially increase exponentially after about day 5,” he added.

President Joe Biden was notified of the pipeline’s closure Saturday morning, and the Department of Homeland Security’s cybersecurity and infrastructure security agency is coordinating with the Colonial Pipeline.

US Secretary of Commerce Gina Raimondo said on Sunday that “everything is on deck at the moment”.

“We are working closely with the company, state and local authorities to ensure that they are back to normal operations as soon as possible and that there are no disruptions in supply,” she told CBS ‘Face the Nation.

The pipeline failure comes as Americans start traveling again as restrictions are lifted and Covid vaccination rollout accelerates. On Friday, the TSA checked more than 1.7 million passengers, the highest figure in more than a year.

“The colonial outage comes at a critical time for the recovering US economy: the start of the summer driving season,” said ClearView Energy Partners. “Persistent disruption that causes pump prices to rise significantly could increase the prospect of domestic policy intervention,” the company added.

The national average for a gallon of gasoline was $ 2,962 on Sunday, up 60% year over year, according to AAA.

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– CNBC’s Emma Newburger contributed to the coverage.

Categories
Business

Pipeline Shutdown Has Had Little Influence on Provides So Far

Pipeline Shutdown Has Had Little Impact on Supplies So Far

HOUSTON – The shutdown of the largest oil pipeline between Texas and New York on Friday after a ransomware attack had little immediate impact on gasoline, diesel or jet fuel supplies. However, some energy analysts warned that prolonged exposure could raise prices at the pump along the east coast.

Nationwide, the AAA Motor Club reported that the average price for regular gasoline did not move from $ 2.96 per gallon from Saturday to Sunday. New York state prices remained stable at $ 3, and prices rose a fraction of a penny per gallon in some southeastern states like Georgia, which are considered particularly vulnerable if the pipeline does not reopen quickly.

There is no evidence that motorists are panicking or that gas stations are undermining their customers at the start of the summer driving season, when gasoline prices traditionally rise.

But gasoline shortages could arise if the pipeline operated by Colonial Pipeline closes later this week, some analysts said.

“Even a temporary shutdown will likely cause national retail gas prices to rise above $ 3 per gallon for the first time since 2014,” said Jay Hatfield, chief executive of Infrastructure Capital Management and investor in natural gas and oil pipelines and storage.

The shutdown of the 5,500 mile pipeline that carries nearly half of the east coast’s fuel supplies was a worrying sign that the country’s energy infrastructure is vulnerable to cyberattacks by criminal groups or nations.

Colonial Pipeline admitted on Saturday that it was the victim of a ransomware attack by a criminal group, which means the hacker can take the company’s data hostage until he pays a ransom. The privately owned company wouldn’t say whether it paid a ransom. They said it was working to get up and running as soon as possible.

In business today

Updated

May 7, 2021 at 1:12 p.m. ET

One reason prices have not risen so far is that the east coast generally has plenty of fuel on hand. While fuel consumption grows, it remains depressed due to the prepandemic.

Nevertheless, there are some weak points in the supply system. Inventories in the southeast are a little lower than normal for this time of year. Refining capacity in the Northeast is limited, and the Northeast Gasoline Supply Reserve, an emergency-stop supply, only holds a total of one million barrels of gasoline in New York, Boston and South Portland, Maine.

This is not enough for even a single day with average regional consumption. That is according to a report released on Saturday by Clearview Energy Partners, a Washington-based research firm. “Much depends on the length of the failure,” the report said.

When Hurricane Harvey paralyzed several Gulf Coast refineries in 2017 and halted flows of petroleum products from the colonial pipeline to the northeast for nearly two weeks, spot gasoline prices in New York Harbor rose more than 25 percent and took nearly a month to subside.

Regional refineries can supplement their shipments through Kinder Morgan’s Plantation Pipeline, which runs between Louisiana and Northern Virginia. However, its capacity is limited and it does not reach any major metropolitan areas north of Washington, DC

The east coast has ample ports for importing petroleum products from Europe, Canada, and South America, but this can take time. Tankers sailing at speeds of up to 14 knots from Rotterdam in the Netherlands can take up to two weeks to get to the port of New York.

Tom Kloza, global director of energy research at Oil Price Information Service, said the Biden administration could suspend the Jones Act, which requires goods shipped between American ports to be transported on American-built and operated ships. This would allow foreign flag tankers to move additional barrels of fuel from Gulf ports to ports on the Atlantic coast. The Jones Act is usually suspended in emergencies such as hurricanes.

“One could argue that the Biden administration might consider such a move sooner rather than later if problems with the colonial software persist,” said Kloza.

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Ransomware assault forces shutdown of largest gas pipeline within the U.S.

Ransomware attack forces shutdown of largest fuel pipeline in the U.S.

Signage will be displayed on a fence at the Colonial Pipeline Co. Pelham intersection and terminal in Pelham, Alabama, USA on Monday, September 19, 2016.

Luke Sharrett | Bloomberg | Getty Images

The operator of the country’s largest fuel pipeline, the Colonial Pipeline, fell victim to a cybersecurity attack targeting ransomware on Friday, forcing the company to temporarily suspend all pipeline operations, the company said in a statement on Saturday.

The company hired an outside cybersecurity firm to investigate the incident and reached out to law enforcement and other federal agencies. The cyber attack also affected some of its IT systems.

The Colonial Pipeline, which carries nearly half of the east coast’s fuel supplies, said it was “taking steps to understand and solve this problem.”

“Right now, our main focus is on the safe and efficient restoration of our service and our efforts to get back to normal operations,” said a company statement.

“This process is already underway and we are working diligently to address this issue and minimize disruption for our customers and those who depend on Colonial Pipeline,” the company said.

Colonial operates the largest refined product pipeline in the United States, according to its website, shipping 2.5 million barrels a day. Refined products include gas, diesel, heating oil, and jet fuel. The pipeline also supplies the US military.

Colonial’s system spans more than 5,500 miles between Texas and New Jersey, connecting refineries on the Gulf Coast to more than 50 million people in the southern and eastern United States, the company said.

The Federal Energy Regulatory Commission, which oversees interstate pipelines, said it was aware of the cyberattack and is monitoring the situation.

“We are aware that it appears to be a serious cyber attack on the Colonial Pipeline system,” said chairman Richard Glick in a statement to CNBC. “FERC is in communication with other federal agencies and we are working closely with them to monitor developments.”

President Joe Biden was also briefed on the incident on Saturday morning, according to a White House spokesman.

“The federal government is actively working to evaluate the impact of this incident, avoid supply disruptions and help the company to restore pipeline operations as soon as possible,” the spokesman said.

The Biden government announced a 100-day plan in April to protect the country’s electrical systems supply chain from cyberattacks amid growing concerns over the vulnerability of U.S. power supplies to cyber threats.

A US Department of Energy spokesman said the department is coordinating with Colonial Pipeline, the energy sector, states and interacting partners to support the response effort.

“DOE also works closely with the coordination councils of the energy sector and the centers for the exchange and analysis of energy information and monitors possible effects on the energy supply,” the spokesman told CNBC.

Andy Lipow, president of Lipow Oil Associates, based in Texas, said an outage that would last a day or two would cause some minor inconvenience and greater impact after four to five days of shutdown.

There could also be possible sporadic outages if a certain terminal was dependent on a delivery today or tomorrow and this is now delayed, said Lipow.

“Unlike the February frost or the hurricane, refineries are still operating, converting crude oil into gasoline, jet and diesel. They just can’t get it to the terminals,” said Lipow. “Prolonged colonial pipeline downtime will force refineries to lower their operating rates as refinery stocks fill up.”

“While they may not be able to ship it to Colonial, the refineries will certainly continue to ship to the Midwestern markets,” said Lipow.

John Kilduff, a partner at Again Capital in New York, said that if the outage persists, gasoline, diesel, and jet fuel shortages will quickly emerge in the United States.

“It appears that it was more of a ransomware attack than a state actor, but it shows the significant security flaw across the industry,” said Kilduff. “If there is no resumption of operations or at least no clarity about a resumption by tomorrow evening, gasoline prices will skyrocket on Sunday evening.”

Eric Goldstein, assistant director of cybersecurity at the agency for cybersecurity and infrastructure security, said the agency is working with partners from Colonial Pipeline and Interagenten.

“This underscores the threat ransomware poses to businesses regardless of size or industry,” Goldstein said.

Colonial Pipeline is privately owned by five companies: CDPQ Colonial Partners, IFM (US) Colonial Pipeline 2, KKR-Keats Pipeline Investors, Koch Capital Investments Company, and Shell Midstream Operating.